"TikTok's Chinese owner ByteDance has signed binding agreements with US and global investors to sell the majority of its business in America, TikTok's boss told employees on Thursday. Half of the joint venture will be owned by a group of investors, including Oracle, Silver Lake and the Emirati investment firm MGX, according to a memo sent by chief executive Shou Zi Chew."
"In the memo, TikTok said the deal will enable "over 170 million Americans to continue discovering a world of endless possibilities as part of a vital global community". Under the agreement, ByteDance will retain 19.9% of the business, while Oracle, Silver Lake and Abu Dhabi-based MGX will hold 15% each. Another 30.1% will be held by affiliates of existing ByteDance investors, according to the memo."
"In April 2024, during President Joe Biden's administration, the US Congress passed a law to ban the app over national security concerns, unless it was sold. The law was set to go into effect on 20 January 2025 but was pushed back multiple times by Trump, while his administration worked out a deal to transfer ownership. Trump said in September that he had spoken on the phone to China's President Xi Jinping, who he said had given the deal the go ahead."
ByteDance has reached binding agreements to sell the majority of its US TikTok business to a joint venture in which investors including Oracle, Silver Lake and Abu Dhabi’s MGX will hold significant stakes. The transaction is scheduled to close on 22 January and will give Oracle, Silver Lake and MGX 15% each, affiliates 30.1%, and leave ByteDance with a 19.9% stake. The deal includes licensing of TikTok’s recommendation algorithm to Oracle. The sale resolves long-running US national security concerns and follows legislation and administrative negotiations that delayed a potential app ban.
Read at www.bbc.com
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